Abbey National cuts savings rates

Abbey National yesterday chopped 0.25% off its range of savings rates in the latest blow for hard-pressed savers.

The Easy and postal Isas for savers investing £3,000 to £12,000 or more have moved down by 0.25%, with the top rate falling from 4.8% to 4.55% - except for savers in the £1-£2,999 band, where rates move up 0.05% to 3.45%. Rates on one-year variable bonds and products aimed at the over-60s are all down 0.25%.

The moves have come at a time when, Abbey National says, the fixed interest markets are extremely "volatile". A spokesperson said: "We, like a number of providers, are finding there is volatility in the market even though the base rate has stayed the same. Lloyds TSB have also cut their rates."

But savers with the popular E-saver account are spared cuts: the rate remains 4.4%.

Other downward shifts this week include Stroud & Swindon building society's Direct Premium Saver, which falls from 4.00% to 3.75% on deposits up to £5,000.

Look out for more bad news next Friday, when Bristol & West and Liverpool Victoria are both expected to announce rate cuts.